I'm still, after all these years, waiting for someone to explain to me how shorting adds "liquidity" to the market. How does selling shares you DON'T own add liquidity, but people selling shares they DO own NOT add liquidity?
Short selling is a totally contrived method of selling something you don't own to make a profit.
Imagine if I came up to you and advised you that I sold your house last week, but not to worry, as I bought it back this morning for a lower price. So now the value of your house has been devalued big time.
I hate short selling with a passion - it's the main reason I stopped doing any short-term trading. Back when algo trading really took off and was able to manipulate share prices whichever way they liked, and they were able to offload or buy back shorted shares in thousands of tiny trades or even off-market.
When was the last time anyone saw one of the good old-fashioned short-covering rallies? Years ago!
Put me firmly in the camp of "They Should Ban Short Selling".
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